What we don’t like about dynamic pricing is that it’s necessary because of free riding scalpers and the artists get blamed.
Bruce Springsteen fans had a rough introduction to the world of dynamic ticket pricing Wednesday (July 20), as many logged into Ticketmaster’s Verified Fan platform to buy tickets for his upcoming tour with the E Street Band and experienced sticker shock at the cost of the best seats.
Those prices – which climbed into the thousands of dollars, as widely reported – represented about 1 percent of the tickets listed on the Ticketmaster Verified Fan sale, but they became a sore point for fans who felt that they no longer had a shot at great seats after years of loyalty to the Boss.
By selling high-priced platinum tickets, Ticketmaster argues, the company can prevent the best seats from being bought and resold by scalpers. That money can instead go to Springsteen. However, this only works when the tickets cost enough to prevent scalpers from making a profit.
Sources tell Billboard that early numbers show that less than 10 percent of tickets sold for the five concerts that went on sale Wednesday ended up on the secondary market – lower than average – and that despite complaints about four-figure prices, only 1 percent of tickets were above $1,000.
We will continue to drill down on what this actually means, but it’s a huge step in the right direction. It’s another fairness making step by a major label along the path of recoupment improvements and most of all the frozen mechanical increase which was real money for all.
Also big thanks to SoundCloud for sticking to their beliefs and ignoring the critics and naysayers and, of course, the lobbyists.
It must be said that this development gives the lie to Spotify’s position that adopting user centric requires renegotiating every license in the known universe before the topic can be broached. Fortunately for the artists concerned, SoundCloud was willing–even lacking Spotify’s extra $300 million to satisfy Daniel Ek’s edifice complex in Barcelona–to invest the resources in constructing a user-centric royalty payment system in anticipation of widespread adoption.
I wonder which TikTok exec would be talking to an FCC commissioner like Brendan Carr? Could it be this guy aka “Old Twinkletoes”? Hanging in there for the “Say Anything” IPO tour?